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Pay cap plan for nuclear chiefs

Thursday 20 July 1995 18:02 EDT
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The Government is set to clamp down on executive pay and perks in the nuclear industry, which is due to be privatised next year, writes Mary Fagan. Whitehall sources said that nothing has been decided, but ministers were likely to "take account of the experience of the last few years" as well as paying attention to Greenbury, with stringent conditions attached to the award of share options.

Constraints are likely to be placed on overall remuneration packages for a period after privatisation. The source said the Government would want remuneration viewed as "fair reward".

It is thought that for more than a year, ministers have been informally urging utility bosses to show restraint and sensitivity on pay policy, but to no avail. The source said that with hindsight, there is some regret that a tougher line on share options was not taken when the industries were privatised.

One nuclear industry insider said he was resigned to the fact that it would be held up as an example and a signpost for future privatisations.

The Greenbury committee

Sir Richard Greenbury Marks & Spencer

Sir Michael Angus Whitbread and The Boots Co.

Sir David Chapman Bt Wise Speke (Stock brokers) Newcastle

Sir Denys Henderson Rank Organisation

Sir David Lees GKN

Geoff Lindey JP Morgan

Tim Melville-Ross Institute of Directors

George Metcalfe Umeco

Sir David Simon British Petroleum

Sir Iain Vallance British Telecom

Robert Walther Clerical Medical

Andrew Edwards

John Grieves Freshfields

Peter Jeffcote Freshfields

Angus Maitland Maitland Consultancy

John Carney Towers Perrin

Matt Lewis KPMG

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